Following in Microsoft's wake, Sony announced that it is launching the PlayStation 4 JV in China as the tech world scrambles to get their products and devices in the most populous country and continues to open up to outside companies. The move aims to shore up Sony's losses for the year and hopes that in the long run it will be a major spot for revenue generation.
With the company expected to see losses for the sixth out of the past seven years, Chief Executive Officer Kazuo Hirai believes that entering the Chinese market in full force will help to eradicate years of frustration and deliver to Chinese the company's top products.
It could also mean Microsoft's pending deal with China could be a thing of the past. It will take time to see if China is looking to have both gaming consoles available on their market.
In order to enter China, Sony has formed two companies in partnership with Shanghai Oriental Pearl in order to begin manufacturing and selling PS4 consoles in the country after over a decades-long ban by the Chinese government.
The announcement prompted Sony shares to rise dramatically, the most in two months on the Shanghai Exchange.
As per suggested reports, the Chinese market is ripe for video game consoles, with an expected $10 billion in revenue generation next year alone.
"PlayStation needs to expand its user base," Hirai told reporters in Tokyo in announcing the joint venture.
Hirai also echoed earlier statements that the PS4 would be the driving force behind the company's future profit stream and hoped that the continued updating and online capacity will be another source to generate revenue for the company that desperately needs improvement in order to avoid further losses.
Much speculation has surrounded the large video game makers of late over how they will proceed in the Chinese market. Some experts feel that developing and designing an entirely new model for China could be the difference between moderate and great success. Many features, these experts say, will help to entice the Chinese market to get out and purchase a device.
Sony has yet to comment on the idea and which direction they are headed in the Chinese market, and a spokesperson declined to say if the company was planning on selling the existing PS4 or if they would redesign specifically for the said market.
